What is the annualized forward premium or discount

Assignment Help Finance Basics

Reference no: EM133430233

Case: Please use the following information to answer this the question. The quotes are for Swedish Korner per USD (Indirect for USD)
March 6th, 2023
Bid Sell 1 USD
Min 10.4522
Avg 10.4537
Max 10.4866
Ask Buy 1 USD
10.4608
10.4633
10.5068
March 6th, 2017
Bid Sell 1 USD
Min 8.97368
Avg 8.97368
Max 8.97368
Ask Buy 1 USD
8.98610
8.98610
8.98610

1. What is the rate of appreciation/depreciation of the USD between 2017 and 2023?

2. How do you think the trade patterns between Sweden and the USA were impacted by the your response in part 1? Explain.

3. On March 6th, 2023 the 180 days forward contract for Swedish Korner (SEK) was 9.98 SEK per

USD. What is the annualized forward premium or discount on the SEK?

Reference no: EM133430233

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